Bloomberg:
- Iran rejected the suspension of its uranium enrichment program, the min objective of a European Union-led offer of incentives to which the country is due to give a formal reply tomorrow.
- The dollar fell to an 11-week low against the euro as traders reduced expectations the Fed will increase its interest-rate target again this year.
- Morgan Stanley(MS) agreed to acquire Golenborough Realty Trust for about $840 million in cash, giving it office properties from Boston to California.
- Ford Motor(F), slashing production after battling a decade-long drop in US market share, is preparing to extend buyout offers to all its factory workers in North America.
- President Bush said the US plans to increase aid to Lebanon to more than $230 million and urged rapid deployment of a UN force to ensure stability and distribution of the help.
- Treasuries are rising again, pushing yields on 10-year notes to their lowest since March, on signs that inflation and growth are slowing.
Wall Street Journal:
- US companies are seeking private equity deals to remove themselves from the stock market, as Sarbanes-Oxley rules push up costs and curb innovation, Maurice “Hank” Greenberg wrote.
- EBay(EBAY) faces calls for a change in management from businesses selling goods on the site.
- Wal-Mart Stores’(WMT) critics were branded a “traveling circus” by Arkansas Governor Mike Huckabee after he was asked to back criticism.
- Friendster, the Internet-based social network competing with News Corp.’s(NWS) MySpace.com, will say today it got a $10 million investment from venture capitalists, as it tries to attract more users.
- Wal-Mart Stores(WMT) plans to reduce solid waste at its almost 4,000 US outlets by 25% in three years.
- Researchers have concluded that the human immune system one day might be restored to fight the AIDS virus or even cancer.
- A comedian and a so-called “mentalist” have set up a sleuth service to ferret out the growing number of imposters on MySpace.com.
NY Times:
- Pakistanis in the US say economic success and social integration reduce the chances that a member of their community would become an anti-American plotter.
- A digital security software application called Cleversafe offers a lower-cost way to secure documents as smaller fragments of data that can be reassembled only by the computers that originally created the files.
Washington Post:
- Iraq’s ambassador to the US, Samir Sumaida’ie, urged the US not to withdraw its troops from Iraq until the country is more stable.
Dawn:
- A 48-member delegation from the US visit Pakistan next month to explore investment opportunities in the energy sector.
Financial News:
- Silver Lake Partners, manager of the world’s biggest tech buyout fund, put Instinet Group up for sale after receiving an unsolicited bid for the business.
la Repubblica:
- Israeli Prime Minister Ehud Olmert said Italy should take over from France and lead the UN peacekeepers in southern Lebanon.
AFP:
- Former Iraqi dictator Saddam Hussein refused to enter a plea at the start of a trial for genocide during the 1988 Anfal campaign against the Kurds.
Monday, August 21, 2006
Sunday, August 20, 2006
Monday Watch
Weekend Headlines
Bloomberg:
- Israeli special forces raided Lebanon late yesterday to prevent arms from being smuggled to Hezbollah fighters from Iran and Syria, five days after a cease-fire came into effect.
- UN Secretary-General Kofi Annan is “deeply concerned” about Israel’s raid two days ago in eastern Lebanon that endangers the “fragile calm” in the region.
- US Treasuries posted the biggest weekly increase since May after slowing inflation and housing bolstered investor expectations that the Fed may be finished raising rates this year.
- BHP Billiton Plc(BHP) reopened the world’s biggest copper mine and resumed talks with striking workers in Chile.
- Democratic Senator Joe Lieberman, who will run as an independent in the November general election, told CBS’s “Face the Nation” that a proposal by Democratic nominee Ned Lamont to set a deadline for withdrawing US troops from Iraq would incite more sectarian violence and terrorism in the Middle East.
- China’s decision to raise benchmark interest rates and give lenders more discretion over mortgage costs ay curb soaring investment by developers while avoiding a slump in demand from home buyers.
- Thailand and its neighbors including Cambodia are favored by child predators and other sex tourists, attracted by their vulnerable populations, lax laws and reluctant enforcement, aid organizations say.
- Corn may decline and soybeans fall for a seventh straight week as rains and cooler weather in the US Midwest increase prospects for the autumn harvests.
NY Times:
- US District Judge Anna Diggs Taylor ignored statutory arguments when she ruled that the NSA’s terrorist surveillance program was unconstitutional, citing scholars.
- Papa John’s Intl.(PZZA) plans to open more than 800 restaurants outside the US during the next 10 years, focusing on the UK, Mexico, Russia, China, India and Korea.
- Russia’s richest investors are putting their money outside the country as they seek to protect their assets from the government and earn larger profits.
San Jose Mercury News:
- The city of San Jose leads the California Bay Area in the production of solar energy.
LA Times:
- Increased US border patrols, more barriers and high-tech monitoring along the Mexican border has made it more difficult for illegal immigrants to enter the US.
Reuters:
- Contrarian investors are betting that the beaten-up shares of online auction leader eBay(EBAY) have hit bottom.
Guardian:
- Iranian President Mahmoud Ahmadinewjad, who has called for the destruction of Israel, called for the British people to stop supporting Tony Blair, saying the UK prime minister’s foreign policies are harming the country’s reputation.
Yomiuri:
- The Japanese government seeks to exempt oil from economic sanctions that the UN would impose upon Iran if the country refuses to abandon its nuclear program.
Weekend Recommendations
Barron's:
- Had positive comments on (AMP), (AET) and (PG).
- Had negative comments on (NKE) and (HIG).
Night Trading
Asian indices are -.75% to unch. on average.
S&P 500 indicated -.19%
NASDAQ 100 indicated -.35%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/Estimate
- (BOBE)/.32
- (LOW)/.60
- (VRNT)/.29
Upcoming Splits
- None of note
Economic Releases
- None of note
Bloomberg:
- Israeli special forces raided Lebanon late yesterday to prevent arms from being smuggled to Hezbollah fighters from Iran and Syria, five days after a cease-fire came into effect.
- UN Secretary-General Kofi Annan is “deeply concerned” about Israel’s raid two days ago in eastern Lebanon that endangers the “fragile calm” in the region.
- US Treasuries posted the biggest weekly increase since May after slowing inflation and housing bolstered investor expectations that the Fed may be finished raising rates this year.
- BHP Billiton Plc(BHP) reopened the world’s biggest copper mine and resumed talks with striking workers in Chile.
- Democratic Senator Joe Lieberman, who will run as an independent in the November general election, told CBS’s “Face the Nation” that a proposal by Democratic nominee Ned Lamont to set a deadline for withdrawing US troops from Iraq would incite more sectarian violence and terrorism in the Middle East.
- China’s decision to raise benchmark interest rates and give lenders more discretion over mortgage costs ay curb soaring investment by developers while avoiding a slump in demand from home buyers.
- Thailand and its neighbors including Cambodia are favored by child predators and other sex tourists, attracted by their vulnerable populations, lax laws and reluctant enforcement, aid organizations say.
- Corn may decline and soybeans fall for a seventh straight week as rains and cooler weather in the US Midwest increase prospects for the autumn harvests.
NY Times:
- US District Judge Anna Diggs Taylor ignored statutory arguments when she ruled that the NSA’s terrorist surveillance program was unconstitutional, citing scholars.
- Papa John’s Intl.(PZZA) plans to open more than 800 restaurants outside the US during the next 10 years, focusing on the UK, Mexico, Russia, China, India and Korea.
- Russia’s richest investors are putting their money outside the country as they seek to protect their assets from the government and earn larger profits.
San Jose Mercury News:
- The city of San Jose leads the California Bay Area in the production of solar energy.
LA Times:
- Increased US border patrols, more barriers and high-tech monitoring along the Mexican border has made it more difficult for illegal immigrants to enter the US.
Reuters:
- Contrarian investors are betting that the beaten-up shares of online auction leader eBay(EBAY) have hit bottom.
Guardian:
- Iranian President Mahmoud Ahmadinewjad, who has called for the destruction of Israel, called for the British people to stop supporting Tony Blair, saying the UK prime minister’s foreign policies are harming the country’s reputation.
Yomiuri:
- The Japanese government seeks to exempt oil from economic sanctions that the UN would impose upon Iran if the country refuses to abandon its nuclear program.
Weekend Recommendations
Barron's:
- Had positive comments on (AMP), (AET) and (PG).
- Had negative comments on (NKE) and (HIG).
Night Trading
Asian indices are -.75% to unch. on average.
S&P 500 indicated -.19%
NASDAQ 100 indicated -.35%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/Estimate
- (BOBE)/.32
- (LOW)/.60
- (VRNT)/.29
Upcoming Splits
- None of note
Economic Releases
- None of note
BOTTOM LINE: Asian Indices are lower, weighed down by automaker and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 100% net long heading into the week.
Weekly Outlook
Click here for The Week Ahead by Reuters
There are a number of economic reports of note and several significant corporate earnings reports scheduled for release this week.
Economic reports for the week include:
Mon. - None of note
Tues. - Richmond Fed. Manufacturing Index
Wed. - Existing Home Sales
Thur. - Durable Goods Orders, Initial Jobless Claims, Continuing Claims, New Home Sales
Fri. - None of note
Some of the more noteworthy companies that release quarterly earnings this week are:
Mon. - Bob Evans(BOBE), Lowe’s(LOW), Verint Systems(VRNT)
Tues. - Intuit(INTU), Jack Henry(JKHY), Medtronic(MDT), Toll Brothers(TOL)
Wed. - Borders Group(BGP), Brown Shoe(BWS), Chico’s FAS(CHS), Coldwater Creek(CWTR), Dollar Tree(DLTR), Eaton Vance(EV), Handleman(HDL), Kerzner Intl.(KZL), Michaels Stores(MIK), Payless ShoeSource(PSS), Phillips-Van Heusen(PVH), Regis(RGS), Tech Data(TECD)
Thur. - Hormel(HRL), Jackson Hewitt(JTX), Patterson Cos(PDCO), Smithfield Foods(SFLD), Williams-Sonoma(WSM)
Fri. - None of note
Other events that have market-moving potential this week include:
Mon. - None of note
Tue. - Fed’s Guynn Speaks, Fed’s Moskow speaks
Wed. - AAPL’s NAPE Summer 2006
Thur. - AAPL’s NAPE Summer 2006
Fri. - Fed’s Bernanke speaks
There are a number of economic reports of note and several significant corporate earnings reports scheduled for release this week.
Economic reports for the week include:
Mon. - None of note
Tues. - Richmond Fed. Manufacturing Index
Wed. - Existing Home Sales
Thur. - Durable Goods Orders, Initial Jobless Claims, Continuing Claims, New Home Sales
Fri. - None of note
Some of the more noteworthy companies that release quarterly earnings this week are:
Mon. - Bob Evans(BOBE), Lowe’s(LOW), Verint Systems(VRNT)
Tues. - Intuit(INTU), Jack Henry(JKHY), Medtronic(MDT), Toll Brothers(TOL)
Wed. - Borders Group(BGP), Brown Shoe(BWS), Chico’s FAS(CHS), Coldwater Creek(CWTR), Dollar Tree(DLTR), Eaton Vance(EV), Handleman(HDL), Kerzner Intl.(KZL), Michaels Stores(MIK), Payless ShoeSource(PSS), Phillips-Van Heusen(PVH), Regis(RGS), Tech Data(TECD)
Thur. - Hormel(HRL), Jackson Hewitt(JTX), Patterson Cos(PDCO), Smithfield Foods(SFLD), Williams-Sonoma(WSM)
Fri. - None of note
Other events that have market-moving potential this week include:
Mon. - None of note
Tue. - Fed’s Guynn Speaks, Fed’s Moskow speaks
Wed. - AAPL’s NAPE Summer 2006
Thur. - AAPL’s NAPE Summer 2006
Fri. - Fed’s Bernanke speaks
BOTTOM LINE: I expect US stocks to finish the week mixed as short-covering and lower long-term rates offset profit-taking and rising tensions with Iran. My trading indicators are now giving bullish signals and the Portfolio is 100% net long heading into the week.
Saturday, August 19, 2006
Chart of Interest
BOTTOM LINE: The CRB Index broke down through its 50-week moving average for the first time since its major move higher began in October 2001. Soaring commodity prices have been the main source of inflation fears. This is one of the reasons the 10-year T-note continues to rally. Gold and Copper have likely already made long-term tops. Oil will likely begin a significant move lower over the next 6 weeks.
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